Bot trading domination: Time to panic?

[crwth]

I don't know why people think that it's terrifying to have a bot trade for you. It's something that could be done, and it's highly effective. It helps people who are busy to trade 24/7 without having to worry about anything else as long as the person makes sure that it is a trusted source. If you think about it, it's bots that are executing the trade, but there's always a person behind the account, who funds the capital, etc. Maybe there are more competition with bots in this year. A lot more algorithms could work and be invented, and we will not know this until we are there.

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[bitcampaign]

whether we are in the middle of panic buying or selling panic, if at this time the price of bitcoin is rising slowly whether this is called panic buying because halving soon arrives, what should be feared by a bot while the bot does not work if there are no funds in it, investors The one who holds the money and puts the money in the exchange is the one who arranges everything, but I'm waiting for it to come too it's time not to panic too much selling now

[rez303]

If they do what we feared the most, it would likely manipulate the prices of Bitcoin and other cryptocurrencies as "wild swings" occur and may get even worse in more years to come.

Do you think we should be worried by this in the next few years of this decade? Let me know your reactions or thoughts about this one guys.

Thanks!

There is nothing to scare.  those bots are also made by human algorithms, and it is no different from humans, just that it has no emotions and works very disciplined.  So to defeat such bots is not difficult, we just follow what we have a plan and must have additional contingency plans.  If you can do all that then you won't be scared.

[Xxmodded]

Algorithms and bot-trading have taken over Wall Street and the cryptocurrency market with no sign of slowing down. Analysts say everyday traders should be terrified of the coming decade.

Everyone in the cryptocurrency industry complains of bots ‘manipulating’ prices, but this will likely end up being even more severe during the 2020s.

In the past decade, we’ve seen some wild swings in prices, both among regular assets and cryptocurrencies. It’s primarily been due to algorithmic robots, but their effect will only be stronger in the coming years. The end result will be that successfully trading the market will be even more difficult.

Read the full news here

Analysts claimed that bot-trading may possibly dominate in the 2020's, do you think it is time for traders like us to panic now?

If they do what we feared the most, it would likely manipulate the prices of Bitcoin and other cryptocurrencies as "wild swings" occur and may get even worse in more years to come.

Do you think we should be worried by this in the next few years of this decade? Let me know your reactions or thoughts about this one guys.

Thanks!

I ever faced with bot trading and make panic because when I put buy order always miss because bot trading put with higher price, I try to make my order buy higher amount and price but always bot trading make higher price than my buy order, then I try to use my price and waiting until price down for my order assets can buy some altcoin in market.

[wajik-tempe]

If they do what we feared the most, it would likely manipulate the prices of Bitcoin and other cryptocurrencies as "wild swings" occur and may get even worse in more years to come.

Do you think we should be worried by this in the next few years of this decade? Let me know your reactions or thoughts about this one guys.

Thanks!

There is nothing to scare.  those bots are also made by human algorithms, and it is no different from humans, just that it has no emotions and works very disciplined.  So to defeat such bots is not difficult, we just follow what we have a plan and must have additional contingency plans.  If you can do all that then you won't be scared.

Yeah bots won't be able to cover all the market conditions because there are a million different situation in the market and it's impossible for the human algorithm to create the bots that have 100% win rate in every trade. So, don't worry about it because bots are not a thread for cryptocurrency trading.

[avatar_kiyoshi]

only panic if the bot algorithm succeeds with an AI precision ratio of 90% and is stable in generating profits in all conditions, if it's like this then not only traders are disturbed, the exchange will also start to make some improvements to get rid of it. There is no meaningful panic, but the trend will change where traders will prefer exchanges with lower bot activity.

That's impossible if there are a bot which have precision ratio of 90%, especially in cryptocurrency market, I tested automatic bot in crypto market, I can say it's around 60-70% ratio. In forex the ratio results are bigger and more stable.

I'm not so optimistic that the exchange will cut bots in its market, because AFAIK trading bot is legal.
for the next year there will likely be many trading bot, but the risk level is the same as manual trading.

[pajak666]

I would be surprised if market wasn't already dominated by bots. Why would anyone do it manually when we have been using computers for the past dozens of years? Whatever is your strategy it always makes sense to just automate it. If you are not able to build a working strategy, then no worries because neural networks and machine learning are taking over the industry so you will only need to pay subscription plans and multiply the money. Why would it be a reason to panic? Edges will get smaller but before of that people couldn't participate in this profit so yea, seems fair.

[dunfida]

only panic if the bot algorithm succeeds with an AI precision ratio of 90% and is stable in generating profits in all conditions, if it's like this then not only traders are disturbed, the exchange will also start to make some improvements to get rid of it. There is no meaningful panic, but the trend will change where traders will prefer exchanges with lower bot activity.

That's impossible if there are a bot which have precision ratio of 90%, especially in cryptocurrency market, I tested automatic bot in crypto market, I can say it's around 60-70% ratio. In forex the ratio results are bigger and more stable.

I'm not so optimistic that the exchange will cut bots in its market, because AFAIK trading bot is legal.
for the next year there will likely be many trading bot, but the risk level is the same as manual trading.

precision of 90%? Then its already close to holy grail.When it comes to precision i cant really pinpoint yet it would vary on bots settings and the current condition of the market on the time you were trading.
I dont see for us to panic yet it is already casual thing that most of traders do make use of trading bots.

[Dart18]

Not everyone can be as good as those who can input what the bot would really do.
I tried and I failed. It seems easy for other but it is not. There will always be a problem at some point.

So I guess we could say others still prefer it doing with another type rather than bots.
Manual or with orders that are being left there.
It may not be a daily profit but there is a chance for that if you are the one who is monitoring it.

[ethergod]

If the markets are dominated by algorithmic trading, the obvious solution is to consider intermediate to long-term trades, or swing trades. Bots cannot foresee events and cannot be programmed, at least at this time, to make optimal long-term investments. A longer time-frame requires creativity.

[Amel]

only panic if the bot algorithm succeeds with an AI precision ratio of 90% and is stable in generating profits in all conditions, if it's like this then not only traders are disturbed, the exchange will also start to make some improvements to get rid of it. There is no meaningful panic, but the trend will change where traders will prefer exchanges with lower bot activity.

If there really is a bot with such a ratio, maybe it was made by a genius like Albert Einstein haha. But I am very sure, the crypto market is too difficult to achieve such a ratio even though it's still possible anyway. Exchange will not take action in my opinion, if they really eliminate bots then they must be prepared to lose in competition with other exchanges, in fact.

[iv4n]

Not everyone can be as good as those who can input what the bot would really do.
I tried and I failed. It seems easy for other but it is not. There will always be a problem at some point.

So I guess we could say others still prefer it doing with another type rather than bots.
Manual or with orders that are being left there.
It may not be a daily profit but there is a chance for that if you are the one who is monitoring it.

It's not easy even for the people with huge capital, trading bot strategies require a nice starting capital. Other than that, I think that many bots fail to make the profit all the time, wrong set up by the handlers, or slow bot that is unable to compete with other bots and volatile market, who will know.
I like to leave my order rather than having bot to trade for me. Maybe we are old school but it's how I like to do it.

[el kaka22]

What people are forgetting that bots are programmed to do one thing, which is buy and sell, they could never predict the market beforehand, so they could be taken advantage of as well. There has been a lot of times when prices went literally bottom down (like 3 satoshi ethereum deal once) where a bot was actually trying to profit the owner but lost hundreds of bitcoins as well.

So, yes trading bots are doing something that we do not want as manual traders, or it helps people to level the field because not only rich will have bots but the poor will have the same bots as well, that is why bots are not evil in their presence, however that doesn't mean that bots are making it bad or good, they just exist like any other trader out there and can still lose money as well.

[adroitful_one]

What people are forgetting that bots are programmed to do one thing, which is buy and sell, they could never predict the market beforehand, so they could be taken advantage of as well. There has been a lot of times when prices went literally bottom down (like 3 satoshi ethereum deal once) where a bot was actually trying to profit the owner but lost hundreds of bitcoins as well.

So, yes trading bots are doing something that we do not want as manual traders, or it helps people to level the field because not only rich will have bots but the poor will have the same bots as well, that is why bots are not evil in their presence, however that doesn't mean that bots are making it bad or good, they just exist like any other trader out there and can still lose money as well.

Some bots do in fact use technical analysis. I recently setup Gekko on a Raspberry Pi just to play around with it and there's definitely some RSI, Bollinger Bands, and many other technical analysis algorithms built into it. I'm not exactly sure how well they work since I haven't messed with it long enough, but algorithms for things like that do exist. The majority of what you see running on Binance however are just buy low/sell high type bots though.

[davinchi]

There are probably tens of bots that is used at crypto trading, hundreds of them exists out there but most of them are not used that much so only about 10-20 of them are really used with a decent community behind it using it. If you talked with any of them you would know that none of them are happy with it, they are not making profits you imagine they are making and most of them even make a loss during bad times like this.

Almost all of them are used for btc-alt trading which usually makes a loss because alts are doing horribly, few of them used for btc-usdt and even they are not making anything decent these days. So there is nothing to worry about some trading bots that even the users are not happy about, just because they exists doesn't make them an enemy, it makes me just pity the users let alone be afraid of them.

[keyscore44]

Bots have been on the exchanges for years. All cryptocurrency exchanges are full of bots. On Bitcointalk in the Marketplace section you can find plenty of offers for selling bots for trade. Bots that have banks can do several dozen transactions per second. This is nothing new because this has been the case for years.

[Hallmader]

The subject of this thread is kind of absurd. It is somehow like "the market is dumping: time to panic?" I mean, why panic? Is that even an option? What now if the trading platforms are dominated by bots? Is that something new around here? That has been the reality even before. Furthermore, they are not as brilliant as a trader who does the trading manually. In fact we can manipulate trading bots more than they can manipulate us.

[boris singer]

The subject of this thread is kind of absurd. It is somehow like "the market is dumping: time to panic?" I mean, why panic? Is that even an option? What now if the trading platforms are dominated by bots? Is that something new around here? That has been the reality even before. Furthermore, they are not as brilliant as a trader who does the trading manually. In fact we can manipulate trading bots more than they can manipulate us.

perhaps of concern is the effect of increasing the use of bots with more accurate algorithms. in fact the bot currently still has a weak point and cannot respond to all conditions automatically, it is still limited to tools that cannot handle strong swings, if the bot is not proven to interfere with other stock market activities that are clearly quieter than the crypto market, then there is no need to panic.

[Negotiation]

I think it's best not to use a bot when trading When using a bot it is often a time of panic if it goes out of control Bots can be used for long-term trading because the bot works when it is bought and kept on hold It is also a problem in many cases that is why banning trading bots is a decade and it is better to trade your head with intelligence.

[Hallmader]

The subject of this thread is kind of absurd. It is somehow like "the market is dumping: time to panic?" I mean, why panic? Is that even an option? What now if the trading platforms are dominated by bots? Is that something new around here? That has been the reality even before. Furthermore, they are not as brilliant as a trader who does the trading manually. In fact we can manipulate trading bots more than they can manipulate us.

perhaps of concern is the effect of increasing the use of bots with more accurate algorithms. in fact the bot currently still has a weak point and cannot respond to all conditions automatically, it is still limited to tools that cannot handle strong swings, if the bot is not proven to interfere with other stock market activities that are clearly quieter than the crypto market, then there is no need to panic.

Not only are bots failing during swings, they also lack the capability to analyze. They are used according to the limits set by the owner which means that bots are doing what the owner thinks is the best move. The problem is that the market is highly unpredictable. Not even bots plus the owner can predict what happens next in the crypto market.